The circular economy is a model of production and consumption in which materials are not thrown away after a single use: they are kept in circulation for as long as possible by reusing them, repairing them and, in the end, recycling them. In contrast to the linear model of extract, make, use and throw away, it treats waste as a raw material. In the metals industry the idea is nothing new: scrap has been going back into steel mill furnaces for more than a century.
What is the circular economy and how does it differ from the linear model?
In the linear model, every product starts in a mine, a well or a forest and ends up in landfill or an incinerator. It works as long as raw materials are cheap and the space for disposing of waste seems unlimited. The circular economy starts from the opposite idea: resources are finite, and what is waste today can be another factory’s raw material tomorrow.
| Aspect | Linear model | Circular model |
|---|---|---|
| Raw material | Ore and virgin resources | Virgin resources plus recovered material |
| Product design | Designed to be used and discarded | Designed to last, be repaired and be taken apart |
| End of life | Landfill or incineration | Reuse, recycling or recovery |
| Waste is… | A cost | A resource with a market |
| Who is involved | Manufacturer and user | Manufacturer, user, recycler and the industry that reprocesses the material |
What are the principles of the circular economy?
The most widely cited formulation, from the Ellen MacArthur Foundation, sums up the model in three principles:
- Design out waste and pollution. A product designed to be taken apart generates less waste and is easier to recycle.
- Keep products and materials in use. First by extending the product’s life; when that is no longer possible, by recovering its materials.
- Regenerate natural systems. Return nutrients to the soil and reduce the pressure on resources.
The model also distinguishes two cycles. The biological cycle is for materials that can return to nature, such as wood or cotton. The technical cycle is for materials that don’t degrade and have to be kept in use through repair, reuse and recycling. Metals are the clearest example of the technical cycle.
What does Spanish law say about the circular economy?
The key legislation is Spain’s Law 7/2022 on waste and contaminated soils for a circular economy. It is built around the waste hierarchy, which sets the order in which waste must be managed:
- Prevention: generating less waste.
- Preparing for reuse.
- Recycling.
- Other recovery, including energy recovery.
- Disposal, as a last resort.
The law also strengthens traceability through documentation and requires construction and demolition waste to be separated into fractions, one of the reasons the industry talks about a new selective demolition law. To apply the hierarchy to the day-to-day running of a factory, see the three Rs in an industrial business.
Why are metals such a good fit for the circular economy?
Because they can be melted again and again without losing their basic properties. A steel beam can end up as rebar and, decades later, as another beam. Electric arc furnace steel mills work mainly with scrap, and recycled aluminium needs around 5% of the energy required to produce it from bauxite.
The important caveat is that the loop only closes if the scrap reaches the furnace at the quality the melter asks for: the right size, good density, few contaminants and controlled residual elements. Steel with too much copper or tin, for example, can no longer be used for certain applications. That preparation work is what a metal recovery company does.
What role does metal recovery play in the cycle?
Between whoever discards something and the furnace that melts it, there is an essential step: collecting, sorting, processing and checking the quality. Without it, scrap is a mix that nobody can melt.
Collection and sorting
Material comes in from industry, building sites and demolitions, end-of-life vehicles and electrical equipment. At reception it is weighed, inspected and sorted by type of metal and grade.
Processing
Heavy scrap is cut to steel-mill size in shears; mixed scrap is broken down in a shredder and separated by magnetism, density, eddy currents or X-rays. Cable is granulated to free the copper from the plastic.
Quality control
Before it leaves for the steel mill or foundry, the material is checked. At Alberich there is radiation monitoring on the way in and on the way out, and copper undergoes spectrographic analysis.
The waste management side is covered in more detail in metal waste management and the circular economy.
Examples of the circular economy at Alberich
This is how some of the materials we process at our sites go back into industry:
| Incoming material | Process | Goes back into industry as |
|---|---|---|
| Structures, machinery and offcuts | Shears of 600 to 1,000 t | Sheared scrap for steel mills and foundries |
| Vehicles and mixed scrap | 4,000 hp shredder and magnetic separation | 210-211 shredded scrap |
| Non-ferrous fraction from the shredder | Eddy current, X-ray and colour sorting | Zorba and aluminium for secondary remelting |
| Electrical cable | Granulation and density separation | Copper granules for wire-drawing mills and refineries |
| Drinks cans | Removal of contaminants and baling | UBC for making new cans |
| Copper-aluminium radiators | Aluminium and radiator line | Copper and aluminium as separate products |
In demolition the reasoning is the same on a different scale: separate at source to recover as much material as possible. We explain how in the circular economy and industrial demolition.
Frequently asked questions
Are the circular economy and recycling the same thing?
No. Recycling is one part of the model, and in the waste hierarchy it comes after prevention and reuse. The circular economy starts earlier: designing products that last and can be repaired, reusing them and, only after that, recycling their materials.
Is recycled metal the same quality as new metal?
Metals can be remelted without losing their basic properties, which is why recycled steel and aluminium are used in demanding applications. The final quality depends on the sorting beforehand: the fewer contaminants and residual elements the scrap contains, the better the result in the furnace.
How can an industrial SME start applying the circular economy?
The most immediate step is to separate the waste it generates at source, especially metal waste, and hand it over to an authorised waste management company that will return it to industry. Then come the design and purchasing measures: reducing material losses, reusing packaging and choosing materials that are easy to recycle.
Is the circular economy compulsory for companies?
The model itself is not an obligation, but many of its components are. Law 7/2022 requires companies to follow the waste hierarchy, to hand their waste over to authorised waste management companies and to separate construction and demolition waste into fractions.
If your company generates scrap or metal waste and you want it to go back into industry, see what we buy or ask us for a valuation.
